Federal Open Market Committee (FOMC) Federal Reserve System (FRS) the USA would leave unchanged the base interest rate in the range of 0-0,25% per annum up to the meeting to be held January 26-27, predict analysts polled by foreign media.
experts also expect that the Committee reiterated that it would keep rates at “extremely low” for a “long time”.
deteriorating situation of stock markets last week, which resulted in the American indexes for the three days lost more than 5%, is a reminder that the unprecedented government actions that have spurred the rally in 2009, will gradually decline this year, writes The Wall Street Journal. And considering what the grand and global are these incentives, a simple increase in interest rates in the U.S. is unlikely to be a positive factor for the markets.
Many experts wonder to what extent the recovery of stock markets due to improved fundamentals and how - stimulating measures. Some analysts believe that good forecasts of corporate profits will support the American action.
Looking back does not give support to the optimists: after increasing the value of money in the United States in March 1988 over the next two months, SP 500 fell 6.7%, and after similar events in February 1994 - 8,7%. For three months after the Fed raising rates in June 1999 the index went down by 7,6%.
But the vice president, Financial Research MF Global Nick Kalivas believes that if the exit strategy will go smoothly and the Fed on this wave will hint at a modest rate increase, then the way the stock market will only “speed bumps” to slow down and no more.
“Enhancing Fed rate by 25 or 50 basis points is not an important event”, - believes Kalivas. However, in a sense, it can lead to the fact that people will see the strength of the economy, and this in turn creates a favorable background for the stock market, he added.
According to the survey, almost 70 analysts, the base interest rate in the United States will remain at current levels until November 2010, and then the Fed begins to raise. The average waiting more than 50 experts at the end of this year amount to 0.75% per annum.
The average forecast of 47 professionals at the end of the first quarter of 2011 for the value of money is 1.25%, seca3cond quarter - 1,75% and the third quarter - 2,25% per annum. The poll was conducted by Bloomberg, from 5 to 12 January.
U.S. central bank keeps rate in the target range from 0% to 0.25% per annum from December last year. In 2008 the rate dropped 7 times.
For comparison: the base rate of the European Central Bank currently stands at 1% per annum, the Bank of England - 0,5% per annum, the Bank of Japan - 0.1% per annum.
The mood of the market set the weak futures on the SP and negative dynamics on Asian markets In 2009, the quality of service of Ukrainian companies record znizilos …
Forex Market 26/01/2010
The economy is still weak
The number of supporters in the Senate, Bernanke growing
Aviation middlebrow
Forex - Asia
Reduction in the Russian markets has affected all blue chips, drivers turning placc2ygrounds yet
At 13.00 Moscow time trade on the MICEX Stock Exchange amounted to 76155.9 million rubles
The main event of today”s trading session is out of data on stocks of petroleum and petroleum products from the U.S. Institute of Petroleum